Kanvic Consulting’s Post

Indian Housing Market: Rising Prices and Affordability Challenges India's housing market is seeing steady price growth, driven by rising demand for premium and luxury homes. In 2023, home prices increased by 4.3%, with projections of 7.0% growth in 2024, 6.5% in 2025, and 7.5% in 2026, according to reports. However, the market’s focus on premium housing has created structural challenges, pushing affordability further out of reach for middle and lower-income groups. Real estate experts caution that if demand from affluent buyers falls, it could lead to a sharp decline in overall sales. With a shortage of affordable housing and most new launches catering to high-end buyers, more people are opting for rentals, driving rents up by 7.5% to 10% over the next year. The stress on affordability is expected to affect first-time buyers, especially with limited relief in sight from interest rates. India, home to over 1.4 billion people, faces a massive challenge in meeting affordable housing demand. While luxury housing may dominate the market in the near term, addressing these structural issues is essential to balance the housing ecosystem and support sustainable growth. #HousingMarket #Affordability #RentalRates #SustainableGrowth

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